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A small article in The Week just recently reminds us that as long as we have money, there will be someone there to take it from us.
Kimberly Lankford a writer for Kiplinger’s Personal Finance has commented that The Federal Trade Commission, Better Business Bureau and Federal Bureau of Investigation who are all warning people about several types of scams related to the government’s economic stimulus plan that are active.
Apparently, one of the schemes promises a $12,000 government grant, but, in reality, could be a con for unwittingly signing up for recurring credit card charges. Another "prospecting" scam job involves emails posing as the IRS, claiming that a person’s stimulus money will be forfeited unless he hands over his bank account information.
Just recently I wrote about two phishing episodes that I got caught up in and you can read about them at this URL: http://tinyurl.com/cw6qzf
Here are some other suggestions that I been collecting in my research that may help you in the long run:
Tax refund promises: if you see something in your email box suggesting that you can get “instant refunds,” delete it. In 2007, Americans spent almost $900 million in fees for money that they would have gotten for free had they waited. Sure, there are tax preparers that will offer an advance on your returns but you’ll be paying fees from $62 to $110 dollars on an average refund of $3,000. Just wait for your tax refund the regular way.
Store credit cards: When you pony up to the counter to pay at your department store you’ll see offers of saving up to 20% on purchases if you open a store credit card. You might want to reconsider. According to the Consumer Action group, more credit card applications are being turned down today and the rejection you get, might affect your credit rating and ability to get credit in the future. Experts say that if the discount promised is really worth it for a major buy, ask for a free credit report first, to see if you are a likely candidate for getting a card.
Rent-to-Own is probably a deal you don’t want. The companies generally purchase the furniture or electronics items and then mark the price up for you by as much as 300%. The contract you sign for your payback period might have you spending long-term, at least twice the item’s value. And if you default on regular payments, the rental is repossessed with no refund.
Free checks or gifts are often found on the label of your credit card return envelope when you get your bill. Do not use them. Apparently, if you cash one offering a deposit of money, the bank will put that money into your account, but it’s really a loan with inflated interest rates and no grace period.
Open a checking account: Any type of program or employment that suggests you need to open a checking account to work with them is bogus. And you can never divulge your checking account numbers or banking information to anyone, or, one day, you will find yourself cleaned out.
Sell your gold jewelry: I’ve seen a large number of these ads, (especially late at night on TV), and, even though gold is a commodity that is at record high levels, you may not be getting what your piece is worth. The companies that do this are melting down the pieces and you'll be receiving what they assess it for as scrap. So if it’s an especially original piece of jewelry, the aesthetic value is not taken into consideration and you may get more for it at a pawnshop or a jewelry store that buys gold items of design.
And let's not forget the false mortgage schemes for distressed homeowners that are popping up. The FTC has just recently filed complaints against five companies for alleged deceptive practices but, apparently, there were 71 others right behind. Sham refinancing hits people when they are the most vulnerable—they give people false hope—and then fleece them in the process. The FBI is investigating more than 2,100 mortgage fraud cases according to an article published in USA TODAY just recently.
In closing, I guess the best idea to leave you with is: be wary. Better to err on the cautious side then to find out that in difficult economic times you’ve been hit by one of those people who are looking to take your money. Don't be a rip-off statistic; I hate to see the bad guys winning.
http://www.examiner.com/topic-economy.html
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